- 54% of Philippine advertisers are investing in mobile marketing in 2014, up 6% from 2013. This is attributed to increasing smartphone accessibility and data plans. - Marketers' views of mobile marketing are expanding beyond SMS to include mobile ads and apps. However, mobile is still mainly used for brand awareness and attracting new customers. - Most marketers have a moderate level of insight into consumer mobile behavior now, compared to negligible insights in 2013. More are also using third parties for their mobile strategy. - The top three areas marketers plan to increase investment in are mobile CRM, mCommerce, and mobile coupons. Lack of case studies is seen as the main barrier currently. -

1. Philippine Advertisers
Attitudes to Mobile
Marketing 2014

2. INTRODUCTION
.
.
For the second year, Mobext has
conducted a joint research with the
Philippine Association of National
Advertisers (PANA), with the aim of
addressing the question: How do
Philippine advertisers view
mobile as a marketing channel?
Mobile is a low-hanging fruit for
Philippine marketers, ripe for the
picking: Data from Nielsen1 projects
that smartphone penetration will
triple by 2015, while Millward
Brown’s global AdReaction study
shows that smartphones take up
more screen time than TV or
desktops.2
But this has yet to resonate with
marketers’ investment in the
medium. On one hand, there are
those who perceive it to be a
complex medium because of the
various mobile tools they can use.
On the other hand, there are those
who do not see mobile’s
uniqueness from laptops and PCs.
The primary purpose of this
research is to uncover the perceived
benefits and barriers of our
marketers when it comes to mobile.
But apart from that, this also serves
as a comparative study to see how
attitudes and investment in mobile
have changed in the past 12
months.
The study was conducted last June
to August 2014 through an online
survey using PANA’s member
database. We have gathered
responses from 87 mid-to-senior
marketers from across different
industries such as FMCGs, Real
Estate, Retail, Pharmaceuticals,
QSRs, Banking and Insurance, and
Utilities and Services.
1 OnDevice Research 2014, Philippines Mobile Internet Trends, https://ondeviceresearch.com/blog/philippines-mobile-internet-trends
2 Millward Brown AdReaction 2014, http://www.millwardbrown.com/adreaction/2014/#/

3. Are Philippine
advertisers
investing in mobile
marketing?
54%
YES
2013
2014
48%
YES
From 2013, the percentage of marketers
investing in mobile rose by 6%.
We see three main factors contributing
to this growth. First, smartphones are
becoming more accessible, with several
local manufacturers producing quality
devices at competitive prices. Secondly,
the telcos have launched new data plans
and bundles to encourage mobile web
and app usage. Lastly, marketers are now
seeing case studies from local brands
who have found success in mobile.

4. Marketers’ view
of mobile is
expanding
85
55
2013 2014
66 70
77
51
76 72
SMS / text
messaging
On-the-go, mobile
customer service
Mobile ads Mobile apps
*Respondents were allowed to choose more than one.
In 2013, mobile marketing was, by
and large, heavily associated with
SMS or text messaging. This year, we
are seeing that marketers’
perspectives are balancing out.
Though SMS is still top-of-mind,
mobile ads and mobile apps are
increasing their mindshare.
What comes to mind when you hear the phrase ‘mobile marketing?’

5. Insight on mobile behavior is improving
In 2013, the majority (45%) of the
respondents claimed to have
negligible insights when it comes to
the mobile behaviors of their
consumers. Consequently, 58% of
them said at the end of the survey
that they would increase their
investment and research within the
next 12 months.
The result seems to be evident this
year, as more marketers have moved
up to having ‘moderate’ level of
insights.
How much insight do you have on the mobile behavior of your consumers?

6. More marketers are
using third party
organizations for their
mobile strategy
2013
2014
This is in line with the increased
intent to build mobile expertise. The
study did not make a distinction
though between digital agencies and
specialist mobile agencies.
Are you using a third-party organization for your mobile
strategy?

7. Mobile is mainly
used for brand
awareness
The great potential of mobile lies in
the fact that it is the only device
present throughout our consumers’
purchase journey. This is why
marketers should aim to create
mobile moments in every step.
Right now, mobile is mostly used by
marketers to raise brand awareness
and attract new customers.
What is the role of mobile in your
marketing?
*respondents allowed to pick more than one

8. SMS and mobile sites are currently the top two tools
used by local marketers
What mobile tools are you investing in now?
*respondents allowed to pick more than one

9. But majority plan to increase spend on mobile apps,
location-based marketing, and mobile CRM
Where do you plan to invest in the next 12 months?
*respondents allowed to pick more than one

10. Top 3 breakout areas
Today, mobile commerce does not
only mean paying via mobile. It is
about optimizing the whole purchase
journey for smartphone-dependent
consumers—from the time they
search, look for reviews, consult their
social circles, all the way to buying. It
involves mobile search, mobile-optimized
websites and ordering
sites, mobile coupons, and other
tools that can pull customers closer
to conversion.
Mobile coupons offer a new way to
redeem deals and discounts. Not only
does it offer more convenience for
consumers , but also for brands and
retailers. Mobile coupons are more
cost efficient to produce and
distribute, plus, campaign results are
easier to measure. The key thing for
mobile coupons to work is simplicity.
If you can make the whole
redemption process as fast and easy
as with paper coupons, you will win.
Our mobile phone is our most
personal device, and its potential for
CRM is tremendous. Through mobile,
marketers have a channel for one-to-one
and real-time messaging.
Whether it is through SMS loyalty
programs or through mobile apps
that provide utility to consumers, the
key is relevant and progressive re-engagement
over time, and not just
one-off campaigns.
These three areas showed the biggest jump when it
comes to current levels of investment vs. intended
levels of investment
Mobile CRM
+ 7%
mCommerce
+8%
Mobile Coupons
+9%

11. Lack of case studies is seen as the biggest barrier to
increased mobile spending, while concerns over
limited smartphone reach has dramatically
decreased
*respondents allowed to pick more than one

12. Mobext view:
Addressing mobile
marketing barriers
For mobile, we suggest that
brands take a step back and
define exactly what they want to
achieve with mobile. Is it to get
more leads? Increase sales?
Increase customer engagement?
Next is to define what mobile tool
best fits with that goal. Yes, an
app would be a great asset, but it
is more suitable for brands who
already have a follower base and
are looking for more engagement.
If you are looking to get more
leads, investing in mobile
discoverability—via mobile ads,
mobile search, and mobile
optimized sites—would be more
advisable.
Once you get your results from
your mobile campaign, the best
way to analyze the ROI of mobile
is to compare it versus how much
you are spending and getting
from your other media channels.
Going back to the PANA study,
another interesting finding is that
marketers are becoming more
optimistic when it comes to
smartphone penetration. In
2013, 74% of advertisers cited it as
the biggest reason why they are
limiting their budget on mobile.
But with a healthy surge in
smartphone adoption—thanks to
more affordable handsets—
marketers know that it is only
going to grow exponentially in the
next months. When it comes to
mobile innovation, a year lost in
waiting is equivalent to dog years.
Marketers should experiment on
mobile now because it will be
much harder to catch up.
Concerns over ROI is something
to be expected from a rapidly-growing
medium such as mobile:
with so many mobile channels you
can use and the lack of uniform
analytics, marketers would rather
funnel their budget to tried-and-tested
channels. This is not any
different from how marketers felt
about social media when it
boomed. There was a rush to
build a presence on social media
without having a solid
understanding of its real role in
the business.

13. How will mobile’s role change vs. other
media channels in the next 2 years?
Mobile’s importance will equal TV, print,
radio, online, and social channels

14. TV
47% -Mobile = TV
44% -TV > Mobile
9% -Mobile > TV
Radio
50% -Mobile = Radio
26% -Mobile > Radio
24% -Radio > Mobile
Print
41% -Mobile = Print
38% -Mobile > Print
21% -Print > Mobile
Social
59% -Mobile = social
26% -Mobile > social
15% -Social > mobile
Online Ads
47% -Mobile = online ads
37% -Mobile > online ads
15% -Online ads > mobile
Out of Home
44% -Mobile = OOH
38% -Mobile > OOH
18% -OOH > mobile
In-store
39% -Mobile = In-store
33% -Mobile > In-store
27% - In-store > mobile
Online Search
47% -Mobile = online search
44% -Mobile > online search
9% -Search > mobile
Only 9% said mobile will be more
important than TV in 2 years,
showing that TV is still considered
the primary screen by marketers

15. Marketers satisfied
with mobile ROI
doubled this year
2014
This is one of the main highlights of
this year’s study. Even though
majority of marketers still find that
it is too early to determine the ROI
of mobile, the percentage of those
who are satisfied with mobile’s ROI
almost doubled. Several brands
have already graduated from a
more ‘experimental’ approach when
it comes to mobile marketing and
are now seeing its direct effect on
their business. For those who have
yet to try out mobile, our
recommended approach is to start
small to measure results better, and
then optimize accordingly.

16. 53% of current non-investors
in mobile will
increase investment &
research next year
Next year seems to be a promising
year for mobile, as more than half
of our respondents said that they
will invest more resources into
mobile marketing.
How mobile’s role will change for your company in the
next 12 months?

17. Current non-investors are most keen
to launch mobile-social and mobile
apps in the near future
Where do you plan to invest in in the near future?
*respondents allowed to pick more than one

18. “It is the most important medium for our consumers, and it surpasses TV in terms of reach.
The missing piece for advertisers is to find ways for mobile to surpass TV in terms of
engagement.”
Country Media Manager, top FMCG company
How do local marketers
see mobile as a
marketing channel?
“Consumers' accessibility to information is greater as penetration of mobile/ mobile internet is
continuously growing. It will just be a matter of which industry will capitalize on it--offhand, I
think retail industry will largely benefit from this. From the traditional promo print ads, they can
divert these efforts to mobile marketing - people can get promos in real-time and can attract
both impulse and planned buying trips.”
Group Product Manager, top processed meat
company

19. “Mobile will give marketers a better opportunity to customize communication to their
audience, going beyond the usual demographics. At the same time, they can tap this medium
to enhance their products/services more quickly by gathering customer insights in real time.
Media Manager, top pharmaceutical &
personal care company
“It will be a permanent part of the marketing mix. Any one who does not engage will be
considered foolish and from the dark ages. It shall form part of the media plan to directly hit
certain target markets.”
Assistant Vice President, real estate company
“It could be a great platform to reach segmented geographic locations and cut across income
brackets because every person on the street, whether rich or poor, has a cellphone, especially
in the Philippines. “
Assistant Vice President, retail bank

20. “ I’m optimistic that mobile will be able to go around privacy issues and its over-intrusiveness
in the life of the mobile user. Advertising will be subtle and on-demand. “
Research Manager, top pizza chain
“It will blur the line between above-the-line (ATL )and below-the-line (BTL) marketing. Mobile
will be a necessity.”
Marketing Services Manager, leading milk
company
“The increase in the number of smartphone users will be directly proportional to the increase
of demand for mobile programs and marketing initiatives. The growing middle class and their
increased spending power will likewise dictate the next set of applications and programs that
can be introduced to the market. On the other hand, security and privacy issues will remain a
concern since intrusive marketing can be seen as spam or fraud.”
Marketing Services Head, retail bank

21. “I believe that it would be more user-driven. What is also important to note is that it seems
that no one medium would stand on its own; rather, the trend seems to be in one medium
enriching the user experience of the other. For example, local TV viewers are using Twitter to
complement the viewing experience, allowing them to reach fellow viewers. This is the first
step for brands to create communities later on.”
Manager, insurance company

22. about mobext We provide everything you will
need for a successful mobile
program or campaign.
STRATEGY
•Mobile consumer research
•Mobile marketing insights
•Mobile marketing audit
MEDIA
•Mobile advertising
•Mobile-social
•Mobile videos
CREATIVES
•User experience design
TECHNOLOGY
•Mobile app development
•Mobile site development
•SMS
•Mobile commerce
•Mobile CRM solutions
•Augmented Reality & Image
Recognition
Visit us: www.mobext.ph
For press inquiries:
Trish Elamparo
Marketing Manager
trish.elamparo@mobext.com
For business inquiries:
Raymon Cayabyab
General Manager
mon.cayabyab@mobext.com
mobext is a global mobile
marketing agency network,
with 23 offices worldwide. In
the Philippines, we work with
brands big and small to create
mobile solutions for marketing
and business.